Buying a car · Guide for Louisiana
The bilingual dealership glossary
Twenty-one terms you will hear at the sales desk, in English and Spanish, with the rules of Louisiana, and what is behind each one.
At a dealership people talk fast and in technical English. This table lets you understand every word before you sign. If a word isn't here, ask what it means and ask them to write it down.
| Term · en español | What it means | Watch out |
|---|---|---|
| As Is Tal como está | The car is sold with no warranty at all. If it breaks leaving the lot, it is your problem. | Read the Buyers Guide: if it checks "As Is", no spoken promise counts. |
| Buyers Guide Guía del comprador | The window sticker the FTC requires on every dealer used car. It states whether there is a warranty and what it covers. | Ask for a signed copy; it is part of the contract. |
| MSRP Precio sugerido | Manufacturer's suggested retail price for a new car. Not what you pay. | Does not apply to used cars; sometimes used to make a price look like a bargain. |
| Out-the-door price Precio final | The total with everything: car, doc fee, tax, tag, title and any add-on. The only number that matters. | Get it in writing before talking financing. |
| Doc fee Tarifa de documentación | Dealer charge for preparing paperwork. In Louisiana the dealer documentation fee is capped by law: $436 in 2026 (a $425 base in the statute, adjusted yearly for inflation). The cap rises each year with inflation, but never by more than 3% a year, and the Louisiana Motor Vehicle Commission publishes the year's figure on its website, so check it again each February. It is not a state fee: a dealer who charges it must give you the amount in writing along with a conspicuous notice saying it is not a mandatory state fee (R.S. 6:969.18(A)(2)). And there is a second charge separate from that cap: if you finance, the party extending the credit may charge up to $35 more for documenting the credit transaction (R.S. 6:969.18(A)(1)). They are two different charges and both belong on your contract. | It is not a tax. In practice it is often negotiable even if they say it isn't. |
| Tag / Title fees Placa y título | State fees for the plate (tag) and the certificate of title. The dealer collects them and pays the state. | Ask for the breakdown; they are sometimes rounded up. |
| Sales tax Impuesto de venta | 5% state (since January 1, 2025) plus the parish and city tax where the owner lives; you look up your combined rate by parish in OMV's official Parish & Municipality Tax Table (taxes.mfn.dps.la.gov). It also applies to private sales, on the price on the title or bill of sale, and is paid to OMV at titling, within 40 days. On a trade-in only the difference is taxed: OMV figures the tax on the selling price minus any qualifying trade-in vehicle and minus rebates. If you bring a car from another state, tax paid there is credited; a new resident pays at most $90.00 in state and local use tax, but only if every condition in OMV Policy 48.00 is met: the car was bought out of state and sales or use tax was already paid there, the car is for personal use, the car was already registered or leased in that new resident's name in the other state, and it is registered in Louisiana within 90 days of being brought into the state. Miss one condition and the full tax on the car's value is due. One trap to watch: if you buy from a private seller in another state but sign the papers before a Louisiana notary and do not hand in proof that the seller lives elsewhere, OMV processes a "double transfer" and charges tax on both sales (OMV FAQs; Policy 47.00). | A private seller doesn't collect it; you pay it when you title the car. |
| APR Tasa anual | The real yearly cost of the loan, interest and fees included. Compare offers on this, not on the payment. | Arrive with a pre-approval from your bank or credit union and ask them to match it. |
| Term Plazo | Months of the loan. More months, lower payment, more interest and more time owing more than the car is worth. | Avoid more than 60 months on a used car. |
| Down payment Enganche / inicial | What you pay up front. It lowers the loan and the risk of going "upside down". | Ideal: 10–20% of the price on a used car. |
| Upside down / negative equity Al revés | You owe more on the loan than the car is worth. It happens with small down payments and long terms. | If you trade in an upside-down car, the debt rolls into the new loan. |
| GAP insurance Seguro GAP | Covers the gap between what you owe and what insurance pays if the car is a total loss. | Useful if you are upside down. Usually cheaper from your insurer than from the dealer. |
| Extended warranty / service contract Garantía extendida | A service contract covering certain repairs for a period. It is not a manufacturer warranty. | Read what it excludes and who pays the shop. Always optional. |
| Trade-in Entrega de tu auto | Your current car as part of the payment. Ask whether the state deducts the trade-in from the taxable amount. | Negotiate its value separately from the price of the car you buy. |
| Lien Gravamen | A registered debt on the car. The bank appears on the title until it is paid. | Without a lien satisfaction letter, you cannot title it in your name. |
| Title Título | The document proving ownership. In several states it is electronic and printed at transfer. | The VIN and the name must match the car and the seller. |
| Salvage / Rebuilt Salvamento / Reconstruido | Title brands for total loss and rebuild. See the Title Check guide. | Must be disclosed in writing before the sale. |
| Odometer disclosure Declaración de millaje | The seller declares the mileage when transferring the title. Federal law. | "Not actual" or "exceeds mechanical limits" lower the value. |
| CPO (Certified Pre-Owned) Usado con programa de fábrica | A manufacturer program: inspection, warranty, age and mileage limits. Costs more. | An independent dealer's own "certification" is not the same thing. |
| Dealer add-ons Extras del dealer | Pre-installed or bundled products: paint protection, nitrogen in tires, etching, alarm. | Nearly all are optional and high-margin. Ask to remove them. |
| Spot delivery Entrega inmediata | You take the car before financing is truly approved. | It is the door to the "yo-yo". Don't take it without financing closed in writing. |
| PPI (Pre-purchase inspection) Inspección pre-compra | An independent mechanic's check before you buy. Costs $100–$250. | A seller who refuses it is giving you the answer. |
Three words xCruzo does not use"Certified," "verified" and "clean" imply a certification nobody is actually giving you. When you hear them on a lot, ask: certified by whom, and what does the paper say?
From a guide to the individual vehicle
Sources
- FTC — Dealer's Guide to the Used Car Rule (Buyers Guide, As Is)
- FTC — Financing or leasing a car
- Louisiana Department of Revenue — RIB 25-007, State Sales Tax Rate
- Louisiana Motor Vehicle Commission — Bulletin B-2026-001, Maximum Documentary Fee for 2026
- NHTSA — Odometer fraud
This guide informs; it is not legal or financial advice, nor an offer, quote or appraisal. Every figure carries its source and date; check it is still current before you decide.
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